Elements Of Configuring Pension Systems

Social policies have a special role in economy as they support the population, especially that part of the population experiencing a decrease in working capacity. Social services have a major role in social policies, whose domains of reference are: social security, housing, health, education, unemployment, etc. They do not only analyse society and its problems (inequality, poverty, discrimination, unemployment), but solve the respective issues by specific means including decisions and actions to increase welfare. When designing social policies, one must also consider the architecture of the structures implementing the programs through which this wealth is generated. Account should be taken of the fact that international studies show that people around the world are concerned about a number of serious demographic issues such as the steadily declining birth rate and the fast growth of the average age of population. Thus, the population of an increasing number of states is reduced, but at the same time we are witnessing a global aging phenomenon. These trends became visible decades ago; however, population aging has been having a negative impact in recent years. Throughout the world, states have reformed or reconfigured their public pension system, mainly by introducing private savings schemes for retirement. The causes are generally the same: the population ages, the periods of pension payments increase, the number of social security contributions decreases, public pension no longer provide a reasonable rate of replacement of the income from the active period, and the public pension systems are no longer enough for the payment of pensions.